TAG Immobilien AG
Q1 - 2012 Q1-Q3 2011
TAG I 1
Content
I.
Highlights Q1-2012/ Guidance 2012 including DKBI
page
3-6
II.
TAG Portfolio Q1-2012/2011
page
7-16
III.
TAG Group financials Q1-2012
page 17-19
IV.
TAG Share Q1-2012
page
V.
TAG Acquisitions 2011-2012
page 21-22
Appendix
page 23 23-28 28
20
TAG I 2
Highlights Q1 2012 figures •
New Guidance in 2012
Rental income of EUR 34.4m EBT raised i d tto EUR 140 140m from f EUR 75 75m
•
Rental profit of EUR 26.1m
•
EBT of EUR 93.4m FFO raised to EUR 40m from EUR 27m FFO of EUR 5.6m
•
Net gains from first time consolidation DKBI EUR 83.1m
•
Target EPRA NAV of EUR 9.75 per share
•
NAV off EUR 9 9.39 39 per share h
•
Dividend Di id d paymentt for f 2011 EUR 0 0.20 20 increasing in 2012
•
Real estate volume more than doubled to EUR 3.062m
•
LTV of 62.7%
Ov verview
•
TAG I 3
FFO Q1 - 2012
EBT
93,417
FFO
‐6,798 ‐83,120 376 1,266 , 459 ‐87,817
Ov verview
Adjustment for non‐cash items Valuation result Gains from first‐time consolidation of DKBI Depreciation p Impairment losses on receivables and inventories Non‐cash expenses
5 600 5,600 Plus liquidity from sales
FFO i l i f FFO incl. gains from sales l
12,835 18 435 18,435
TAG I 4
TAG investment case after the DKBI acquisition Solid financing structure • L Loan t Value to V l 63% (former (f 59%) 59%), average loan l maturity t it off 7.3 7 3 years (5.4) (5 4) • 10 year DKB financing of EUR 680m plus EUR 120m other debt
II.
Team with high expertise; low low-cost cost internal administration
III. •
Flexible corporate structures, able to swiftly adjust to market changes and act on opportunities Grow profitably
VI. • • • •
Considerable potential for increasing values Rental growth Further vacancy reduction Sales above book value Decreasing minorities before book value
VII. •
Integration and Synergies EUR 12m visible from 2013 onwards
Ov verview
I.
TAG I 5
Acquisition 2012 – DKBI Portfolio History of the portfolio 1995 2007
DKB IImmobilien bili was ffounded d d DKB and GBW legally separated
Saxony 15%
BerlinBrandenburg 17%
Thuringia g 50% 85% 9% 6% 15% 60% 35%
refurbished newly built unrefurbished conventional buildings pre fabricated units settlement buildings
19%
rental upside to local market
Capex
was EUR 18/sqm
Ov verview
MecklenburgVorpommern 9%
SaxonyAnhalt 8%
Covenant in the legal documents for Capex agreed EUR 7/sqm
TAG I 6
Portfolio combined Q1-2012 Q1 2012 Units Floor Area sqm Real Estate Volume TEUR Rental income in TEUR* Vacancy % Net Actual Rent EUR/sqm
TAG DKBI Combined 32,179 57,279 25,100 2,338,540 1,490,000 3,828,540 2 008 880 1,052,000 2,008,880 1 052 000 2,559,000 2 559 000 137.770 73,000 210,770 10.9 11.3 11.0 5.39 4.60 5.15 *annualised/ estimate
Po ortfolio
• Metropolitan regions of Berlin, Hamburg, Th i i Saxony, ThuringiaS Düsseldorf Dü ld f and dS Salzgitter l itt • Strategic rationale to grow in order to benefit from operational leverage • Most of DKBI portfolio is in proximity of existing TAG offices ffi in i Berlin B li and dE Eastern t Germany G
TAG I 7
Portfolio combined Q1-2012 Q1 2012 Real estate volume
Rental income per segment in EUR million
Volumen in EUR million
210 200
3,062
73
3000
150 1,052
2500
115
1,969 100
1500 1000
318
770
1,535
978
12.8
1,502
50
499
479
475
25
26
28
2009
2010
2011
28
0
0
12/31/09
52
21
452 318
46
87
26
479
500
109
Po ortfolio
2000
12/31/10
12/31/11
TAG Portfolio of residential real estate TAG Portfolio of commercial real estate DKBI in total
03/31/12
2012 ((estimate))
TAG Residential real estate TAG Commercial real estate DKBI in total
TAG I 8
Why y we have g grown: Net rental profit p outpacing p g interest costs also resulting in higher margins • Cash flow from EUR -36m 2009: • TAG EUR -17m 17 • Colonia EUR -15m • Francono EUR -4m
in EUR million 80 70
in positive territory in 2011: EUR +4m
79
+126%
60
• Portfolio growth from 2009: 4,000 units to 2011: 32,000 units
50
50
• Personnel Cost efficiency/ scale
40 30
effects from 2009: EUR 10m to 2011: EUR 10.5m
40.2 35.0
+157% 29
20
26.3 23 7 23.7
10
11.3
13.9
0
Po ortfolio
+111%
• Vacancy reduction • Better cost structure • Carry after interest shows that
Net rental profit
− 2009
Interest costs 2010
=
Margin
growth is profitable
2011
as of 12/31/2011 TAG I 9
Portfolio TAG residential as of 12/31/2011
Po ortfolio TAG I 10
Portfolio residential by region - Hamburg • • • •
Strong need for new residential units Increase of single tenant and elderly people households Homeownership 22% Strong spillover effects into periphery / commuter towns.
Po ortfolio
• Biggest vacancy upside in communter town north of Hamburg (Elmshorn) • From Colonia portfolio • One entirely empty block, plan was to tear it down…
• Average asset rent: EUR 5.14 • Number of accommodation , units: 6,326 • 22% of the residential portfolio (by book value) • Vacancy 9.2%
as of 12/31/2011 TAG I 11
Portfolio residential by region - Berlin • Increasing lack of new residential units • Average letting size 54 sqm • Strong like-for-like rental growth.
Average asset rent: EUR 4.81 Number of accommodation units: 8,255 28% of the residential portfolio (by book value) • Vacancy 5.2%
Po ortfolio
• • • •
• 11% homeowner ship in Berlin • Berlin is growing and g y attracting gp people p increasingly • Building substance not good as in the rest of Germany • This often implies that capex can yield much higher returns and rents can be increased faster • Last acquisition 1070 units in Eb Eberswalde ld ((north th off B Berlin) li )
as of 12/31/2011 TAG I 12
Portfolio residential by region - Berlin
• TAG is in Berlin regions where demographics show a growing population • TAG is happy to buy in the centre as well in the outskirts as long as the relative value is right • In 2011 TAG bought for over 9% gross yield in Berlin
Po ortfolio
10,000 units as of Jan 2012
Existing TAG Portfolio New Acquisitions in 2011/2012 DKBI Portfolio
TAG I 13
Portfolio residential by region – Saxony/Leipzig
Po ortfolio
• Average asset rent: EUR 4.47 • Number of accommodation units: 2,497 • 8% of the residential portfolio (by book value) • Vacancy 10 10.0% 0%
• Very attractive concentration of B cities between Leipzig and Dresden. • Good infrastructure, good demographics (again) and strong economic growth. • A very exciting regional cluster for TAG as the region is likely to grow in strategic g g importance p in the real estate market
as of 12/31/2011 TAG I 14
Portfolio residential by region - Salzgitter Vacancy reduction • Overall vacancy in Salzgitter: 10% • V Vacancy iin our portfolio tf li 21 21.7% 7% (f (from 24 24.4%) 4%) • We are in above-average location • 2,000 units are missing for elderly tenants • Chances/angles for marketing: - having h i ad decentt product d t - take tenants from neighbouring parts
Cash Flow positive during half a year TAG management
• Average asset rent: EUR 4.76 • Number of accommodation units: 8,741 • 22% of the residential portfolio (by book value) • Vacancy 21 21.7% 7%
Po ortfolio
Cost efficiency/Scale effects
Rent increases in 2011 • from 4.41 EUR/sqm to EUR 4.91 EUR/sqm • The rent can be hiked in Lebenstedt • Generally in studios and 1 bedroom apartments
as of 12/31/2011 TAG I 15
Portfolio residential by region – North Rhine Westphalia • Agglomeration of at least 30 cities (29 of 80 metropolises in Germany) • 22% of the German GDP (BIP) • Centres of economic growth • Homeownership 39%
Po ortfolio
Portfolio of TAG in • Düsseldorf, Leverkusen • Dortmund, Köln • Siegburg, Moers • Average asset rent: EUR 5.37 • Number of accommodation units: 3,158 • 12% of the residential portfolio (by book value) • Vacancy 6.6%
as of 12/31/2011 TAG I 16
Group financials (IFRS) Consolidated balance sheet
(in EUR m)
12/31/2011
3/31/2012
2,048
2,048
3,220
204
3000
2000
2500
595
1,922
811
1,985
2000
1 208 1,208
1200
2,956
1500 800
1000 400 0
Group p finanicals
1600
219 3,220
500
Assets
264
245
126
424
0 Liabilities
Non-current assets Current assets
Assets
Liabilities
Equity Non current liabities Non-current Current liabilities TAG I 17
Financial structure
Loan to Value / Equity ratio
Bank borrowings
in %
in EUR m 70
1800
1.732
1600
Financiial structure e
60
62.7 1400
58.5
50 1200
52.9 40
1000
1.017 800
30
29 9 29.9
600
20
26.7 23.8
523.5
400
10
200
259.6 172,6
124.1 0
0
12/31/2010
12/31/2011
03/31/2012
12/31/2010
12/31/2011
current liabilities
LTV
Non-current liabilities
Equity ratio before minorities
03/31/2012
TAG I 18
Financial structure - debt maturity y improved p Debt structure at Q1 2012 in EUR million
•EUR 2,006m
550
•28 German Banks 450
•7.3 years ø maturity •Interest costs of 4.0%
528
250
150
150 50
263
216
180
156
143 56
130 15
34
19
2020
2021
122
Financiial structure e
350
-50 2012
2013
2014
2015
2016
TAG debt
2017
2018
2019
2022 > 2022 Nondisclosed
DKBI debt
TAG I 19
Stock market data TAG as of Q1/2012 High/Low (Q1 2012)
EUR 6.99/EUR 5.77
Number of shares
96 428m 96.428m
Market capitalisation
EUR 666m
Stock exchange
SDAX/EPRA
Free Float *
97%
* Deutsche Börse definition including institutional investors
Shareholder structure
Group of investors Dr. Ristow, D
18% 10% 5% 5% 5% 3% 3% 3% 3%
Sh hare
Ruffer LLP, UK* IP Concept, Flossbach von Storch SICAV, L* Taube Hodson Stonex, UK* Threadneedle, UK* DWS Fund, F d D* Scottish Value Management, UK* Scottish Widows Group Ltd., UK* Skagen AS, AS N N*
TAG I 20
Acquisition 2011-2012 2011 2012
Acquisitions TAG I 21
Acquisition 2011-2012 2011 2012 612 43,591 4.29 1.47% 25.2
Hellersdorf/Marzahn Units Floor area in sqm Net rental EUR/sqm Vacancy Purchase p price EUR/m
461 26,921 5.20 6% 17.6
North Germany/Saxony Units residential 3 3,267 267 Units commercial 76 Floor area in sqm 208,757 Net rental EUR/sqm 5.44 Vacancy 6 6.2% 2% Purchase price EUR/m 150
Chemnitz Units residential Floor area in sqm Net rental EUR/sqm Vacancy Purchase price EUR/m
420 32,000 5.55 4.0% 23.75
Acquisitions
Marzahn/DOM Portfolio Units Floor area in sqm Net rental EUR/sqm Vacancy Purchase price EUR/m
Eberswalde/ Berlin Units residential Floor area in sqm Net rental EUR/sqm Vacancy Purchase price EUR/m
1,057 59,911 4.04 7.0% 30.3 TAG I 22
Appendix Markets, Commercial TAG
I
Markets in key y Eastern German cities have improved p • Purchase power, population and employment have improved since 2006
Market rents (EUR per sqm) 4.0
Magdeburg
7.0
3.5
6.1
• Average population growth of 4.2% expected for Dresden, Erfurt, Jena, Leipzig, Potsdam and Weimar
Leipzig
until 2025
16,083
Erfurt
6,733
7.1
4.1 4.4
6.5 4.6
13.0%
Purchase power
6.3
4.5
8.0
3.8
8.0
4.0
8.2
Unemployment
Population 2006
7.3
5.2
Rostock
Potsdam
7.3
3.8
17.2%
16 790 16,790
6.2
Ap ppendix
Market indicators
58 5.8
3.8
Dresden
• Market rents have improved since 2006
6,584
40 4.0
2010
2006
2010
Source: TLG TAG I 24
Portfolio commercial • • • • •
sqm total sqm rental current rental p.a. net of charged costs (EUR m) current rental net of charged costs (EUR/sqm) vacancy
12/31/2009 342,911 sqm 324,971 sqm 26.6 6.81 5.2%
12/31/2010 335,686 sqm 323,063 sqm 26,0 6.70 3.8%
12/31/2011 348,403 sqm 319,940 sqm 28.8 7.51 8.2%
Hamburg 12%
Leipzig 2%
Berlin 11%
Others 10%
*as of 12/31/2011 by book value
Ap ppendix
Real estate portfolio by region*
NRW/ Mannheim 16%
Munich 49%
Siemensdamm, Berlin TAG I 25
Management Board Rolf Elgeti, CEO Colonia Real Estate AG, Management Board since February 2011 TAG Immobilien AG, Management Board (since July 2009), Supervisory Board from 2008 onwards Bau-Verein zu Hamburg AG, Management Board (since July 2009) Founder of Elgeti Ashdown Advisors Ltd. (2007) Setting up and management of various German real estate investment funds (since 2003) UBS Warburg, Commerzbank, ABN Amro: (chief) equity strategist, London (1999 – 2007) Hans-Ulrich Sutter, CFO
Ap ppendix
Colonia Real Estate AG, Management Board since February 2011 TAG Immobilien AG, Management Board (since April 2008) Bau-Verein zu Hamburg AG, Management Board (since October 2008) Deutsche Real Estate AG, CFO until 09/2007 GSW Gemeinnützige Siedlungs- und Wohnungsbaugesellschaft, responsible for financial matters until 03/2006 CFO in DAX 30 Company (Fresenius Medical Care, 1998) as well as in large Multinationals (Coca Cola Germany, Procter & Gamble Germany)
Dr. Harboe Vaagt, Board Member Management Board since April 2011 in TAG Immobilien AG, Bau-Verein zu Hamburg AG Head of Legal Department of TAG for over 12 years
Supervisory Board Dr. Lutz R. Ristow, Chairman of the Supervisory Board TAG (since 2007) 2007), Colonia (since 4/2011) Prof. Dr. Ronald Frohne (since 2001), Rolf Hauschildt (since 2001), Andrés Cramer (since 2009) Employee representative: Wencke Röckendorf (since 2010), Andrea Mäckler (since 2010) TAG I 26
Contacts TAG Immobilien AG Steckelhörn 5 20457 Hamburg Telefon: Telefax:
+49 40 380 32-0 +49 40 380 32-388
Britta Lackenbauer/ Dominique Mann Investor & Public Relations Telefon: +49 40 380 32-386 / -305 Telefax: +49 40 380 32-388
[email protected]
Ap ppendix
www.tag-ag.com
[email protected]
g Rolf Elgeti CEO Telefon: +49 40 380 32-307 Telefax: +49 40 380 32-388
[email protected] @ g g
TAG I 27
Disclaimer Disclaimer and Copyright
App pendix
This document (presentation) does not constitute an offer or invitation or form part of an offer or invitation to subscribe for or purchase any securities and, neither this document or anything contained herein shall form the basis of any contract of commitment whatsoever. W make We k every effort ff to keep k the h information i f i in i this hi d document ((presentation) i ) current, b but accept no liliability bili whatsoever for the content provided. The content and works provided in this document (presentation) are governed by the copyright laws of Germany. Duplication, processing, distribution or any form of commercialization of the material beyond the scope off the th copyright i ht law l shall h ll require i our prior i written itt consent. t
TAG I 28